Private-equity firm KKR has been pulling back, and yesterday the bulls stepped in.
OptionMonster's tracking systems detected the purchase of some 6,200 January 21 calls, most of which priced for $0.75. The volume was more than 22 times the previous open interest in the strike, indicating that new money was put to work.
These calls lock in the price where investors can buy shares and can provide significant leverage in a rally. For instance, a 25 percent move in the stock by expiration in mid-January would drive up the calls' premiums by more than 150 percent.